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Energy

88 Energy looks forward to restarting activity in Alaska

Flow testing operations are due to restart in the second quarter, but, first a new seismic programme will seek conventional oil potential in the Project Icewine area

88 Energy Plc (LON:88E) shares rose on Wednesday after it told investors that it ended 2017 with A$14mln of cash reserves as it provided a mandatory quarterly activities update.

As the Alaska-focused explorer’s primary work programme has been in hibernation over the winter months, there was little new information to glean from the statement.

READ: 88 Energy expands footprint in Alaska

Nonetheless, the company highlighted the flow testing operation at the Icewine-2 well is due to restart in the second quarter. It will be a hotly anticipated milestone for the early stage shale oil play.

A new seismic programme, meanwhile, is due to get underway next week. This programme will aim to further explore the conventional oil and gas potential of the Project Icewine acreage.

88 Energy also highlighted that it expanded its footprint in Alaska during the fourth quarter, taking net acres to 286,589 acres thanks to the earlier State of Alaska December 2016 licensing round, and it was named as the highest bidder for another parcel (32,800 gross acres) in the December 2017 round.

In late afternoon trading, 88 Energy shares were 5,7% higher at 1.85p.

-- Adds share price --

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